Market Watch

Plus, long-term low Treasury yields, a way in which cheap oil will dent equities, and more FOMC tightening talk.

Global Fixed Income Strategy by Wells Fargo Advisors 1 N. Jefferson Ave. St. Louis, Mo. 63103 Jan. 6: In late 2011, the 10-year U.S. Treasury and 10-year German Bund both provided investors a yield of 1.95%. For the past several years, long-term rates in the U.S. have been slowly diverging from their European counterparts. Currently, the U.S. Treasury yield offers investors 155 basis points [1.55 percentage points] of additional yield over a comparable German Bund. These levels of divergence are near the peak last achieved in 1999. We believe that further divergence is unlikely, as...